Brammer to axe 170 jobs in cost cutting drive

INDUSTRIAL maintenance, repair and overhaul specialist Brammer is cutting 170 jobs as part of a cost reduction programme to save £5m.

The reduction in headcount of the Knutsford, Cheshire, business is expected to cost Brammer up to £4m in exceptional costs.

In its half year trading update, the company said revenues would be up, but profits would be lower than in the first half of 2014, reflecting testing market conditions and foreign exchange headwinds.

The company reported strong sales in sales per working day growth in Europe – excluding the Nordic region – up 6.3% at constant currency rates, while UK sales have stabilised with some positive signs of a return to growth.

One highlight of the up date is five new pan-European key accounts won with total potential revenues in excess of €19 million per annum.

A statement from Brammer said: “The board anticipates that with the combination of the trading momentum and the self-help measures already underway, profits and cash generation for the year will be weighted towards H2.

“Investment in our growth drivers is delivering good returns and will continue as planned.
 
“The continued strengthening of Sterling against the Euro and also against the Nordic currencies is adversely impacting the Group’s results at actual exchange rates.”

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